Q3 2022 Highlights
- Revenues increased 18.9% to
$4,360,217 compared to Q3 2021; - Gross margin was 80.1%, consistent with high-margin, low-overhead business model;
- Adjusted EBITDA of
$1,376,849 ; - Net loss of
$316,789 after one-off non-cash charges of$1,297,231 ; - Abacus Media Rights (TV and documentary) continued to benefit from strong demand from broadcasters and streaming services; and
- Acquired the
UK and Irish distribution rights of Screen Media in perpetuity comprising more than 750 hours of films and TV for total cash consideration of$4,800,000 .
“Our TV and documentary distribution business, Abacus, continued to perform brilliantly during the quarter on the back of strong demand from broadcasters and streaming services for their growing content offering,” said
“Importantly, we’re just getting started. We are highly focused on expanding our presence in
Selected Financial Information
The following table sets out selected historical financial information for Amcomri for the third quarter ended
For the three months ended | For the nine months ended | |||||||
2022 | 2021 | 2022 | 2021 | |||||
Revenue | ||||||||
Gross Margin | ||||||||
Gross Margin Percentage | 80.1 | % | 100.0 | % | 83.8 | % | 87.3 | % |
Operating Expenses | ||||||||
Other Expenses (Income) | $(1,563,561 | ) | ||||||
Net Income (Loss) | $(316,789 | ) | ||||||
Adjusted EBITDA(1) |
(1) EBITDA is a non-IFRS measure. See the “Non-IFRS Measures” section for reconciliation to net income.
(2) Amounts in this news release have been converted from British Pounds Sterling at a rate of £1.00 to
Third Quarter Overview
Revenue for the quarter increased 18.9% to
Five movies originally expected to be delivered to the Company in the third quarter were delayed. Three of the five movies were delivered subsequent to quarter end and the other two are expected to be delivered before the end of the fourth quarter.
Gross margin for the quarter was
Operating expenses for the quarter increased 194.9% to
As a result of the acquisition of the
Excluding the one-off non-cash charges above, Adjusted EBITDA for the quarter amounted to
The Company reported a net loss of
Non-IFRS Measures
This news release refers to certain financial performance measures that are not defined by and do not have a standardized meaning under International Financial Reporting Standards (termed "non-IFRS measures"). Non-IFRS measures are used by management to assess the financial and operational performance of Amcomri. The Company believes that these non-IFRS measures, in addition to conventional measures prepared in accordance with International Financial Reporting Standards, enable investors to evaluate Amcomri’s operating results, underlying performance and prospects in a similar manner to the Company's management. As there are no standardized methods of calculating these non-IFRS measures, Amcomri’s approach may differ from those used by others, and accordingly, the use of these measures may not be directly comparable. Accordingly, these non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with International Financial Reporting Standards.
Amcomri defines EBITDA as net income before interest, taxes, depreciation and amortization. EBITDA is intended to provide a proxy for Amcomri’s operating cash flow and is widely used by industry analysts to compare companies.
Reconciliation of Adjusted EBITDA to Net Income
Three months ended | Nine months ended | ||||||||
(unaudited) | (unaudited) | (unaudited) | (audited) | ||||||
Net Income | $(316,789 | ) | |||||||
Add: | |||||||||
Interest | |||||||||
Tax | $(62,066 | ) | $(1,508,368 | ) | $(785,765 | ) | |||
Amortization and depreciation | |||||||||
Share based payments | - | - | |||||||
Impairment – film distribution rights | - | ||||||||
Adjusted EBITDA |
Forward-Looking Statements
This press release contains statements which constitute “forward-looking statements” and “forward-looking information” within the meaning of applicable securities laws (collectively, “forward-looking statements”), including statements regarding the Company’s intention to complete additional acquisitions, the future performance of Abacus Media Rights, the cinematic release of Left Behind: Rise of the Antichrist, the timing of release of the Company’s films and the plans, intentions, beliefs and current expectations of the Company with respect to future business activities and operating performance. Forward-looking statements are often identified by the words “may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” or similar expressions.
Investors are cautioned that forward-looking statements are not based on historical facts but instead reflect the Company’s expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed thereon, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the Company. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking statements are the following: changes in general economic, business and political conditions, including changes in the financial markets; changes in applicable laws and regulations both locally and in foreign jurisdictions; compliance with extensive government regulation; the risks and uncertainties associated with foreign markets; and those risks and uncertainties that are described in the section entitled “Risk Factors” in the Company’s annual information form dated
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended and such changes could be material. All of the forward-looking statement contained in this press release are qualified by the foregoing cautionary statements, and there can be no guarantee that the results or developments that we anticipate will be realized or, even if substantially realized, that they will have the expected consequences or effects on our business, financial condition or results of operation. Unless otherwise noted or the context otherwise indicates, the forward-looking statements contained herein are provided as of the date hereof, and the Company does not intend, and does not assume any obligation, to update the forward-looking statements except as otherwise required by applicable law.
Investors are cautioned that, trading in the securities of the Company should be considered highly speculative. For a more detailed discussion such risks and uncertainties, please see the section entitled “Risk Factors” in the Company’s annual information form dated
About
For further information about Amcomri, see its disclosure documents on SEDAR at www.sedar.com or visit the company’s website at https://amcomrientertainmentinc.com/
For more information, please contact: | |
Amcomri, Chief Financial Officer Email: larry.howard@amcomri.com Phone: +353-87-686-8255 | Email: theisler@maisonbrison.com Phone: 1-416-500-8061 |
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